Microsoft's Activision Deal Challenged by UK in Fresh Blow

The UK is concerned that Microsoft's acquisition of Activision Blizzard could harm competition, especially affecting competitors like Sony. The CMA suggested Activision Blizzard might need to divest from Call of Duty, a major revenue source. Activision Blizzard is not pleased with this suggestion. CEO Bobby Kotick is trying to normalize the situation, highlighting competition from tech giants like Apple and Facebook. Despite industry challenges, Activision's earnings were buoyed by Call of Duty's success. Regulatory challenges remain, with the US FTC also suing to block the deal. The CMA's final ruling is expected in April, with a potential appeal from Microsoft.

What is the primary concern of the UK regarding Microsoft's acquisition of Activision Blizzard?

• It could harm competition, especially for companies like Sony.

• It would result in job losses at Activision Blizzard.

• It would lead to a monopoly in the tech industry.

• It would increase the price of video games.

What potential remedy did the CMA suggest for the acquisition?

• Microsoft should halt all gaming operations.

• Sony should acquire a part of Activision Blizzard.

• Activision Blizzard should divest from Call of Duty.

• Microsoft should sell its Xbox division.

According to CEO Bobby Kotick, who are the new competitors in the gaming industry?

• Traditional gaming companies like Sony and Nintendo.

• Retail giants like Amazon and Walmart.

• Tech giants like Apple and Facebook.

• Streaming services like Netflix and Hulu.

What was a significant factor in Activision Blizzard's strong earnings?

• The success of Call of Duty.

• A new partnership with Sony.

• A reduction in operational costs.

• An increase in mobile game sales.

What is the role of the US Federal Trade Commission in the acquisition process?

• They are mediating between Microsoft and Activision Blizzard.

• They are providing financial assistance for the acquisition.

• They are supporting the acquisition.

• They are suing to block the deal.